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Sale from Treasury

22 Jan 2021 09:33

BH Global Limited - Sale from Treasury

BH Global Limited - Sale from Treasury

PR Newswire

London, January 22

BH Global Limited (the "Company")(a closed-ended collective investment scheme established as a company with limited liability under the laws of Guernsey with registered number 48555)

LEI: 549300BIIO4DTKEMXV14

Investment Management Agreement

22 January 2021

THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION

The Board of Directors of BH Global Limited notes the receipt this morning of a letter from the General Partner of its manager, Brevan Howard Capital Management Limited, the text of which is set out in full below. The Board will consider the matters raised therein, and make any further announcement as appropriate in due course.

Letter from Brevan Howard Capital Management LP to BH Global Limited

The Board of Directors (the “Board”)BH Global Limited (the “Company”)PO Box 255Trafalgar CourtLes BanquesSt Peter PortGuernsey GY1 3QLChannel Islands

22 January 2021

Dear Directors

Further to discussions between us which started in the first half of last year, we write to set out clearly our position as the manager (the “Manager”) of the Company.

Since its launch in 2008, the Company has had a strong track record, performing similarly to equity markets with significantly lower volatility and with a history of delivering higher performance when equity markets have declined. Since launch until the end of 2020, the largest share class of the Company has had an annualised rate of return of 5.5%, an information ratio of 0.92 and a total return of 96.2%, with an annualised volatility of 5.9%. Over the same period1:

MSCI World Index had an annualised rate of return of 6.7%, an information ratio of 0.4 and a total return of 126.1%, with an annualised volatility of 16.8%. The FTSE 100 had an annualised rate of return of 4.2%, an information ratio of 0.29 and a total return of 68.6%, with an annualised volatility of 14.3%.

The Company has exhibited low correlation to other asset classes, creating true diversification for portfolios, a quality that was amply demonstrated during the market turbulence of 2020. The Company offers investors unique access, via Brevan Howard Multi-Strategy Master Fund Limited (the “Master Fund”) to a range of the world’s leading hedge funds and portfolio managers, an opportunity which has demonstrated its quality over more than a decade.

As the Board will be aware from recent discussions and meetings, we have invested heavily across a number of areas in building Brevan Howard in recent years as we look to invest for the future and seek to maintain and develop an industry-leading business. While we continue to invest significantly in attracting and developing the best possible talent and also strengthening our technology, systems and infrastructure that support them, it is essential that we are supported by all of our investors, via their respective fee structures, to maintain the quality of our platform. Noting the exceptional performance of the Master Fund, the substantial ongoing investment and the increasingly competitive environment, we have concluded that the management fee concessions agreed in 2016 and 2017 no longer support the future success of the Company. We therefore propose that these concessions be withdrawn and the fixed component of the fee paid to the Manager is adjusted back to its prior level of 2% per annum, the fee level that was paid by the Company from 2014.

These terms (the “Proposed New Terms”) represent the minimum level for us to continue to manage the Company as we build for the future in competition with our industry peers. We believe that the reversion of the fixed fee to the level that applied previously will give us the needed flexibility to manage and grow the Company.

We request that the Board convene an extraordinary general meeting (“EGM”) of shareholders as soon as practicable to consider approving the Proposed New Terms by way of a notice of EGM with a circular setting out details of the proposal (the “Notice and Circular”). We would welcome the opportunity to work with the Board and its advisors to assist in the production of the Notice and Circular.

In the event that the Notice and Circular are not published on or before 17 February 2021, except in the case of delay attributable to any necessary regulatory steps being completed, the Manager intends to serve notice of termination of the Management Agreement with the Company and the Company’s investment in the Master Fund will be redeemed.

The implementation of the Proposed New Terms will allow us to strengthen and grow the Company. We sincerely hope that shareholders provide support to the Proposed New Terms and permit us the opportunity to continue to manage the Company for the remainder of 2021 and beyond.

Yours sincerely

For and on behalf of Brevan Howard Capital Management Limited in its capacity as general partner of Brevan Howard Capital Management LP

1 Company’s performance and statistics calculated using monthly NAV per share data of the Sterling share class. Launch date: 22 May 2008. “MSCI World Index” and “FTSE 100” performance and statistics calculated using monthly returns of MSCI World Net Total Return USD Index and FTSE 100 Total Return Index GBP, Source Bloomberg. Annualised rate of return, volatility and information ratio calculations are based on monthly returns. 

Company website: www.bhglobal.com

Enquiries:

Sir Michael BunburyChairman

David YovichicInvestec Bank Limited020 7597 5970

Date   Source Headline
18th May 20181:32 pmPRNNet Asset Value(s)
15th May 20181:28 pmPRNNet Asset Value(s)
14th May 20185:03 pmPRNTransaction in Own Shares
11th May 20185:14 pmPRNTransaction in Own Shares
10th May 20185:02 pmPRNTransaction in Own Shares
9th May 20181:40 pmPRNNet Asset Value(s)
4th May 20185:15 pmPRNTransaction in Own Shares
3rd May 20185:28 pmPRNTransaction in Own Shares
3rd May 20183:03 pmPRNNet Asset Value(s)
1st May 20185:37 pmPRNNet Asset Value(s)
1st May 20185:20 pmPRNTransaction in Own Shares and Cancelation
1st May 201811:26 amPRNTransparency Report
30th Apr 20185:39 pmPRNMonthly Shareholder Report - March 2018
30th Apr 20185:28 pmPRNTransaction in Own Shares
27th Apr 20185:37 pmPRNConversion of Securities
27th Apr 201811:21 amPRNTransaction in Own Shares
26th Apr 201810:48 amPRNInvestor Statement - March 2018
26th Apr 201810:11 amPRNTransaction in Own Shares
24th Apr 201812:39 pmPRNNet Asset Value(s)
23rd Apr 20185:20 pmPRNTransaction in Own Shares
20th Apr 20185:06 pmPRNTransaction in Own Shares
20th Apr 20183:57 pmPRNHolding(s) in Company
19th Apr 20185:13 pmPRNTransaction in Own Shares
19th Apr 20181:26 pmPRNNet Asset Value(s)
18th Apr 20185:27 pmPRNTransaction in Own Shares
17th Apr 20185:27 pmPRNTransaction in Own Shares
17th Apr 20182:48 pmPRNNet Asset Value(s)
16th Apr 20185:15 pmPRNTransaction in Own Shares
12th Apr 20185:30 pmPRNDirector Dealing
10th Apr 20182:09 pmPRNNet Asset Value(s)
9th Apr 20184:26 pmPRNHolding(s) in Company
5th Apr 20186:08 pmPRNShare Conversion Request (March 2018)
5th Apr 20182:51 pmPRNNet Asset Value(s)
3rd Apr 20185:18 pmPRNTransaction in Own Shares
29th Mar 20185:20 pmPRNHolding(s) in Company
29th Mar 20184:16 pmPRNTransparency Report
29th Mar 20181:33 pmPRNMonthly Shareholder Report - February 2018
28th Mar 20185:51 pmPRNConversion of Securities
27th Mar 20182:16 pmPRNNet Asset Value(s)
26th Mar 20185:26 pmPRNTransaction in Own Shares
26th Mar 201811:44 amPRNNet Asset Value(s) - Correction Clarification
26th Mar 201811:26 amPRNNet Asset Value(s) - Correction
23rd Mar 20187:00 amPRNAnnual Financial Report
21st Mar 201811:47 amPRNHolding(s) in Company
20th Mar 20181:04 pmPRNNet Asset Value(s)
19th Mar 20181:36 pmPRNNet Asset Value(s)
16th Mar 20187:00 amPRNAppointment of Director
13th Mar 20182:36 pmPRNNet Asset Value(s)
8th Mar 201810:53 amPRNTransparency Report
6th Mar 20182:56 pmPRNNet Asset Value(s)

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